Depositing Money in Guernsey, can seriously damage your wealth,

Ask any Landsbanki Guernsey Depositor

This is a new site

This is a new site and is still being constructed. It will expand over the coming weeks to cover the Landsbanki Guernsey Situation and keep relevent news on the front page. The links to "READ MORE" etc. will start working as the site expands. It will be here to criticise Government and regulatory authorities where that is necessary and its aim is to always print accurate facts on the current situation.

It is not connected to the main LGDAG site which should still be the first stop for all Landsbanki Guernsey Depositors, and where information and discussions cover every aspect of our problem.

Chief Minister's photo usurps LGDAG Press release

The Guernsey Depositors Compensation Scheme


The official Landsbanki Guernsey Depositors  Action Group website

OECD, what's on


Guernsey Policy Council Statement on Iceland visit by Chief Minister

Deloitte updates for depositors


Site Administrators blog





A lot more will be said about this in the near future. Suffice to say it is totally insufficient and would not cover the headline figure of £50,000 of your savings, should another bank go down. 


The scheme is operated  by an independent Board which is seperate from both the Guernsey Financial services Commission and The states of Guernsey. They have a new website  at 



    Quick Links



Quotes & Comments relevent to Landsbanki Guernsey and Guernsey's Government

30th November 2011



Quote of the year

In the Guernsey States on Wednesday 30th November 2011. Deputy DeLise was asking question regarding the  Guernsey Depositors Compensation Scheme of the Chief Minister Lyndon Trott.


The Chief Minister responded,"the most important protection that a depositor can have is to ensure that the bank with whom they deposit does not fail." 


Just how do you do that Chief Minister, please let us into you secret into ensuring that a bank does not fail, you could make a fortune.

January 2011


"Review should take

account of developing

international standards"

The International Monetary Fund (IMF) While the establishment of the DCS (In Guernsey) is, in general terms, a welcome development, a wider review of the DCS should be undertaken in the medium term. Its creation was a necessary response to the crisis pressures in 2008 and should help to support confidence in the banking system in the future, and its design reflects certain limitations dictated by the nature of the Guernsey financial system. Nonetheless, in due course a wider review of the approach is needed, such as reducing the payout period, a review of the level of the cap on total payouts, the ex ante funding of the scheme, and a risk-based assessment of banks. The latter two points are already considered by the authorities, but will take time to be implemented, especially ex ante funding. This review could also take account of developing international standards on deposit insurance.

23rd December 2010


"different to UK

and EU and doesn't plan to

follow suit."

Deputy Carla McNulty Bauer, Minister for Guernsey Commerce and Employment had the following statement issued after it became evident that the new cover for the UK and European Compensation Schemes  would be introduced on 31st Dec 2010

Commerce and Employment says that while it monitors international developments in this area, Guernsey banking industry is significantly different to that in the UK and EU member States  and doesn’t plan to follow suit.

Are Guernsey Depositors different? So once again Guernsey depositors are the losers, Guernsey definatly doesn't value its retail depositors.

3rd December 2010


"Speculation in

relation to ultimate recovery"

The  Administrators have issued a statement regarding the speculative comments made by the Chief minister during the States debate on the 25th Nov 2010

"We understand that there has been some reference in the States of Guernsey to speculation in relation to the estimated ultimate recovery to creditors of the Bank.

The Joint Administrators would like to draw creditors’ attention to their fourth interim report, which states that their estimate of the ultimate recovery to creditors of the Bank remains at between 85p and 91p in the pound. However, it should be noted that these returns are subject to a wide range of factors which may result in the actual return being lower or higher than this range. For example, should the legal action in Iceland be successful then the recovery may increase, however the Joint Administrators remain cautious about the prospects of success."


An email has been sent to all Deputies

25 November 2010


"Depositors may receive in excess of 100%"

In the debate on the depositor Compensation scheme, the Chief Minister made some unusual, inaccurate, misleading statements:

"depositors are likely to recover in excess of 90 pence in the pound, and I say in excess because I am aware that there are some commentators who have followed this closely who believe that that figure may in fact exceed 100%."

And in the same debate:

"I did say approaching 70pence, it is 67.5 pence in the pound so far and expectations are that that number will be , as I say, close, if not , in the views of some commentators, greater than 100%. Lets be very clear about that, the situation is nowhere near as bleak as Deputy DeLisle seeks to paint."

This goes totally against the information supplied by the Administrators of a possible return of 85% - 91% and appears designed to mislead the states Assembly.

29th Sept 2010


"Usually taking

between three &

seven years."

Chief Minister Lyndon Trott made the below statement in answer to a question by Deputy David DeLisle in the States assembly, It was shown to be misleading and inaccurate and the upgrading of the European & UK Depositors Compensation Scheme will be brought in on the 31st Dec 2010. It will be upgraded from £50,000, to £85,000.

"Should the draft  directive be approved it will then need to be transposed into domestic law in all EU member States, that process is likely to take some years, with the process usually taking  between three and seven years depending on the nature of the particular proposal."

The Chief Minister immediatly laid the blame on Commerce and Employment who had apparently prepared the statement and are responsible for Guernsey's DCS.

10th August 2010


"Put our case forward


Guernsey's Chief Minister Lyndon Trott is just back from shaking more hands in Brussels and in his Press release on the visit made a statement that the LGDAG totally agree with him on, but believe it will have little effect, by applying directly to their own case.

" Decisions are made in Brussels (read Guernsey) which have a direct impact on us , so it is vital that we make our voice heard and put our case forward effectively. That is what the previous two days (read two years) have been all about.

we suspect that the Chief Minister whilst expending all this taxpayers money in Brussels will have about as much success  with Europe as the Landsbanki Guernsey  Depositors Action Group have in getting him to do anything or reply to letters and questions.

Guernsey Banking Deposit Compensation Scheme

20th August 2010


"Contact us"

Answer: "'The Board does not, as a matter of policy, give advice on specific questions relating to the Ordinance".


Basel Core Principle 12 . Public awareness

In order for a deposit insurance system to be effective it is essential that the public be

informed on an ongoing basis about the benefits and limitations of the deposit

insurance system.


Summer 2001


Depositors should not lose money


Underlying this conventional wisdom is an essentially political notion, that upstanding citizens of a country should not be allowed to lose their life savings – at least, that portion deposited in the bank – if they themselves have not been reckless.

Philip Marr director of Banking Guernsey FSC summer 2001


Guernsey Government obviously doesn't share his opinion


3rd Aug 2010


"Openess and  transparency"



Nick Mann of the Guernsey Press states:

"As states members enter the recess period it can be a time for reflection on the past year. A few thoughts might be given to the words "Openess and Transparency", they like to splash around so much in their speeches."

Unfortunately they are shallow words, like so many of the insincere statements we hear coming out of the States today, perhaps their leader has lead them into bad habits. 


12th July 2010


" European consumers deserve better."

Michael Barnier states,"European consumers deserve better. They need reassurance that their savings, investments or insurance policies are protected no matter where in Europe they are based. To make this a reality, I now call upon the European Parliament and the Council to make rapid progress in approving today's package."

EC increase depositor protection to €100,000 READ MORE


10th July 2010


"Actions by Commission benificial to LG depositors"

The GFSC 2009 Annual report stated, The report ( Promontory) also recognised that actions taken by the Commission in 2008 were directly beneficial to the interests of LGL’s depositors. The Commission had required LGL to reduce its direct exposure to Iceland substantially and required the bank to replace assets up streamed to the parent in Iceland with third-party bank placements, placements with Heritable Bank Ltd in London and a portfolio of third-party loan assets, which resulted in LGL acquiring a credit portfolio of property loans.

Landsbanki Guernsey depositors would totally disagree with the above statement, Heritable could hardly have been classed as third party, relying on Landsbanki hf in Iceland for cash flow READ MORE


18th May 2010


"Their trust was betrayed."

Michael Casey who writes for Dow Jones and Wall Street Journal, was in Guernsey on Tuesday 18th May 2010 to speak to Landsbanki depositors, he also spoke to the Chief Minister Lyndon Trott and Director of Banking at the GFSC Philip Marr


He stated that, he had heard lots of different stories from people who feel they were let down and their trust was betrayed and that is a very global feeling right now.”


27th April 2010


"Promontory said there was no regulatory failure"

In reply to the Telegraph article of 27 April, READ MORE GFSC director of banking, Philip Marr said that:


"An independent inquiry into the Landsbanki crisis undertaken by the Promontory Financial Group concluded that there was no regulatory failure on the part of the commission and that a depositor compensation scheme had since been set up."

The Promontory group report was far from independent, being instigated by the GFSC under their terms of reference and paid for by them. There were no witnesses called under oath, no documents  demanded by an independent tribunal. Is it any wonder that Promontory found there was no "bad faith" , the GFSC were their paymasters. It was premature and evidence is continually coming to light. The GFSC will not answer questions and hide behind confidentiality.

The Depositors compensation scheme came in after Landsbanki and was irrellivent to the depositors. It is also totally inadequate covering only up to £100 million in any five year period



A States of Guernsey Spokesman

27th April 2010


"UK and Guernsey interests in conflict"

States of Guernsey Spokesman's response to Telegraph article READ MORE  on MOJ select Committee report and Guernsey having its strings pulled by UK Treasury etc.

"As soon as the Guernsey Government was made aware that the interests of the UK and Guernsey were in conflict, it made its own representation directly to the Icelandic authorities."

landsbanki Guernsey went into administration in October 2008, The Chief Minister eventually went to Iceland in August 2009 eleven months later after a lot of pressure from the Landsbanki depositors group. Another weak response from Guernsey's Government


30th March 2010


"UK will prioritise

its own interests over the States"

Guernsey's Chief minister Lyndon Trott, for the Policy Council. An Extract from Guernsey policy Council Evidence submitted to the Ministry of Justice Select Committee inquiry into the " Crown Dependencies"


4.2 Despite the terms of the Framework, it is apparent that HM Government will prioritise UK interests over those of the States. The negotiations in relation to the amendment to Directive 2003/48/EC29 are a case in point. Similarly, in the discussions between HM Government, conducted by HM Treasury, and the Icelandic authorities following the collapse of that country's banking sector, with consequences for Landsbanki Guernsey Limited, it became clear by July 2009 that the States needed to take steps to advance its own position directly. Consequently, the States commented that month on a draft letter that HM Treasury would send to the Icelandic authorities intimating the States' desire to raise their concerns directly, requesting Iceland's assistance in progressing the matter. Representatives of the States visited Iceland in August 2009. It transpired that HM Treasury's letter was only sent on 23 September 2009.


Shows clearly that Guernsey States although in dialogue with the UK Treasury Dept. were not progressing the Landsbanki Guernsey depositors case in any meaningful way. UK Treasury were not representing the States to their full ability.


30th March 2010



is not optional, it

is the UK

Government's duty

Rt Hon. Sir Alan Beith, in the UK Ministry of Justice select Comittee report on " The Crown Dependencies" of 30th March 2010

89. The representation of the interests of the Crown Dependencies on the international stage by the UK Government is not optional, according to whether or not the interests of the Islands are congruent with those of the UK: it is the UK Government’s duty. In cases of conflict, the Ministry of Justice must endeavour to find a mechanism for representation which will faithfully present and serve the interests of both parties.

There was clear proof that the UK Treasury Dept had failed to represent both Guernsey & the Isle of Man in dealings with the Icelandic Government, in a proper manner but had placed their own interests first.


29 January 2010

Referring to the UK Treasury attitude to the isle of Man.


"trampled on"


"Collateral damage"


"No evidence of IOM's interests being represented"

Alan Bell, Isle of man treasury Minister at the select Committee inquiry on Kaupthing, Singer & Friedlander

“And the relations between IOM Treasury and UK Treasury”; to which Mr Bell responded:


Mr Watterson wondered if Mr Bell would like to expand on his comment; to which Mr Bell replied: “Not on the record”.

When pressed further Mr Bell appeared almost as an apologist for the UK Treasury, stating they had been protecting the UK interests and if there had been any “secondary interests” they had been “trampled on”; and effectively became “collateral damage”.

So although, ultimately, the UK Treasury did agree to make representations he didn’t sense any urgency on their part. In his view the UK Treasury had been very robust in protecting the interests of the UK but not the IOM’s. In fact he confirmed, in reply to a follow up question, he had seen no evidence at all of the IOM’s interests being represented.


Guernsey's situation must have been identical  no wonder the Chief Minister refused to give information, he didn't have any and wouldn't admit that he was being led by the nose


17th February 2010


"Incorrect for the


Question the

validity of Chief



Chief Minister Lyndon Trott speaking to the Guernsey Press after his statement on fair treatment for the Landsbanki Guernsey Depositors.


"It is clearly incorrect for the depositors to question the validity of the Chief Minister's recent assurances that landsbanki Guernsey depositors would be treated fairly by the Winding-Up Board, as claimed by the LGDAG."


His statement is about as reassuring as when he told the LGDAG that the UK Treasury were representing the Guernsey interests in Iceland and had received assurances that all depositors would be treated fairly and equally. That turned out to be untrue and the UK Treasury received Priority Creditor status  whilst Landsbanki depositors became none priority, which means their chance of getting anything out of iceland is about nil.

Nik Van Leuvan

Current Director General of the GFSC

17th February 2010


"Never required guarantees.....

2008 consultation document........

Letter of Comfort not legally binding ???

" The GFSC has never required parental guarantees and pointed out the limitations of such undertakings in its August 2008 consultation paper entitled, ' Consultation on Parental Upstreaming and the Introduction of Depositor Protection and Ombudsman Schemes '. You should refer to Paragraph 4.2 on page 16 of that document which is still on the Commission's website. The GFSC does require subsidiary banks to have letters of comfort in place but it has always recognised that these are not legally binding and made that point plainly in the same consultation paper. "

Landsbanki Guernsey bought Cheshire in August 2006, what has a 2008 consultation document got to do with the two years between 2006 & 2008

19th January 2010


"Engage on request"

Guernsey's Chief Minister was giving Evidence at the Guernsey Airport Firemen trubunal, when he made this comment, which as we know is far from accurate

"One role of the Chief Minister is to engage with members of the community, to explain the policy of the States and it was on that account that I agreed"

He publicly offered to meet the Landsbanki depositors in February 2009, if he received an invitation, three invitations and a year later he is still renegaging on his promise and refusing to meet them. Hollow words.

November 2009


"Responsibility of Guernsey"

Quote from a letter received from the UK Treasury in November 2009. "Landsbanki Guernsey Limited is the responsibility of the Guernsey Financial services Commission and therefore arrangements for depositors in Landsbanki Guernsey are a matter for the Guernsey Government.

October 2009


"The man is a politician and speaks like a politician"

Gunnar Sigurdsson Director of the Iceland Film documentary "Maybe I should have" visited Guernsey:


We also met the Chief Minister of Guernsey , Lyndon Trott. The public on Guernsey that lost their money feel that Mr. Lyndon Trott isn't doing a whole lot to help them reclaim their savings and therefore we saw a reason to pay him a visit.

The man is a politician and speaks like a politician.

October 2009


"Something went wrong"

A quote from a Landsbanki Depositor. "One has to wonder about the motives of those who seek to obstruct public information when our situation is proof enough that, something went wrong." 

(and the GFSC & Guernsey Government are still hiding behind confidentiality and the discredited Promontory report.)    Read the CONFIDENTIAL letters which passed between the GFSC & the FSA in January 2009, which were forced into evidence at the Treasury Select Committee hearing.

2nd July 2009


"The group fails to provide any evidence."

Nik Van Leuven, the new Director General of the GFSC, in the place of Peter Neville, responded to accusations that the GFSC had failed in their "due diligence," by stating in the Guernsey press. " The depositors action group has exposed no such thing, the letter, which is addressed to States Deputies and not the GFSC, makes several assertions about the Commission and regulatory correspondence with the FSA, but the group fails to provide any evidence."

(Subsequently all the evidence was provided to him in a nine page document and later a seventeen page full report was submitted to all Deputies. There has been no further response to date (14th Nov 2009)

July 2009



Allan Bell, Treasury Minister for the Isle Of Man, while speaking about the way the Manx Government were going about reimbursing depositors in the failed bank Kaupthing.

" If the isle of Man stood by and did nothing, that would be irresponsible. Its a short term loan and ultimately we will get the bulk of this money returned to reserves."

( Of course Guernsey's Government was just irresponsible towards its depositors)

May 27th 2009


"Chief Minister, now will you please be quiet."

States of Guernsey meeting end of May 2009. An insight into the Chief Minister. The atmosphere in the chamber turned ugly when Deputy Trott attempted to respond to criticism from Deputy Mary Lowe, but was silenced by the Bailiff, Geoffrey Rowland. As Deputy Trott continued to try to speak, the Bailiff again interrupted him, stating that he was the one presiding over the meeting. A clearly agitated Deputy Trott slumpted back in his chair uttering:

"Yes - presiding badly.' Mr Roland responded sharply: "Chief Minister, I am not presiding badly. I am struggling with a difficult situation. Now will you please be quiet."

May 16th 2009


"Confidential or Transparent ?"

All investments grow free of taxes and investors are guaranteed 100% confidentiality, yet our Chief Minister Lyndon Trott stated that , "the island's inclusion on a white list with some of the world's top financial centres cemented Guernsey's position as an internationally, 'compliant and transparent low tax jurisdiction."

( A contradiction of terms 'confidential and transparent', you cant be both, a little like Guernsey's Government )

4th April 2009


"to resolve these issues"

The Rt Hon. John McFall Chairman of the Treasury select Committee looking into the "Banking Crisis". In his final report he summed up at the beginning by saying, "While we acknowledge the severe distress of those UK citizens suffering due to the Icelandic banking failure, we can only recommend that the Uk authorities work with the Isle of Man and Guernsey authorities to resolve these issues." (November 2009, we are still waiting for the Guernsey Government to resolve these issues)

March 2009


"Treated fairly & equally."

Treasury Select Committe hearing March 2009

Q539 Chairman Rt Honourable John McFall to Lyndon Trott: How would you characterise the UK Government's response to the Icelandic crisis?

Mr Trott reply:” Her Majesty's Government has been able to get an undertaking that all creditors regarding Landsbanki (Guernsey) and indeed the whole group, will be treated fairly and equally and that we consider is a very positive statement.”

March 2009


"How much are you offering them back?"




"How much are you giving them back?"

John Mann MP, on Treasury Select Committee hearing March 2009

Q551 John Mann MP: A lot of decent savers have got their savings at risk. How much are you offering them back? (Isle of Man answers first.)

(Above question aimed at both Guernsey & Isle of Man)

Q555 John Mann MP: And what about yourselves? (referring to Guernsey’s Chief Minister lyndon Trott)

Guernsey Chief Minister Trott:You will be aware, Mr Mann, that there is no international regulatory requirement for a Depositors' Compensation Scheme, but, notwithstanding that, in November of last year the State of Deliberation in Guernsey unanimously approved one quite similar to the one that exists in the Isle of Man in so far as each retail depositor up to £50,000 will be protected through a post-funded and bank funded scheme in the unlikely event that there should be another bank failure. (Failed to answer the question, so John Mann repeats.)

Q556 John Mann: The savers who have put money in, how much are you giving them back?

Guernsey Chief Minister Trott: Already the Landsbanki Guernsey is in administration, a royal court appointed position. Landsbanki savers have already received 30% of their moniesback…………………………………………(10 lines of blather, still fails to answer the question, a simple, NOTHING.)


March 2009


"If something goes wrong, they will not get their money back."

John Mann MP on Treasury Select Committee into Banking Crisis March 2009.

Q557 John Mann MP: So what you are saying is you make huge amounts of profit out of people investing because of your offshore island status, but if a consumer does invest and something goes wrong they will not get all their money back?

Answered by Brown but aimed at both Brown & Trott. Trott fails to answer the question.

March 2009


"Lack of clarity

Lack of information Lack of transparency."

John Thurso MP, on Treasury Select Committee into Banking crisis March 2009.

Q558 John Thurso MP: Can we expect similar problems because of lack of clarity, lack of information with institutional investors at some date in the future with your lack of transparency?

Mr Trott: We are certainly not a non-transparent jurisdiction………………………Another 10 lines of how good we are but never answers the questions in the manner they are asked.

Sunday 22nd




Reneges on offer

Chief Minister of Guernsey, Deputy Lyndon Trott, interupted a Public Phone-in on Radio Guernsey and spent seven minutes "clarifying various misconceptions," regarding the Landsbanki Guernsey Depositors.He ended in saying, "I would also be delighted Penny, assuming an invitation is forthcoming, to address the entire Landsbanki Action group, rather than just a small group of their representitives." He was immediatly taken up on his offer and refused, he has now been invited at least three times and refused, saying he would hold his own public meeting, which he has also failed to do. ( printed Nov 2009, still waiting)

November 2008


"Guernsey Treasury is able to supplement"

Vince Cable MP was written to by Landsbanki Depositors in November 2008. He replied in the same vein to all of them. An extract from his letter, "

Future confidence in Guernsey financial services rests on the institution of a Guernsey
Financial Services Compensation Scheme. Confidence and goodwill may be restored
if the Guernsey Treasury is able to supplement the 3Op in the £1 that the
Administrators will pay to depositors in Landsbanki Guernsey for their savings.

26thNovember 2008


"Nothing Wrong with landsbanki Guernsey placing £37 million with heritable."

In a whole page of the press taken over by the GFSC, Peter Neville the Director General at the time of the 2008 Banking crisis attempts to explain the GFSC's actions.

"There was nothing wrong with Landsbanki Guernsey placing £37 million with Heritable, as it was a seperate UK Bank with its own capital and balance sheet, supervised by the Financial services Authority." he said," The GFSC relied on the FSA's regulation and supervision."

"However this did not mean there was still not a number of questions that needed to be answered  in relation to the Heritable collapse," although he added , "at this time it would be inappropriate to comment any further on them."

Thtough a lack of their own due dilligence and too much reliance on the UK FSA the GFSC allowed that £37 Million to be deposited with Heritable, not knowing that Heritable was reliant on Landsbanki Islands hf in Iceland for its credit line. All the information was out there for Proffessionals to pick up at the time but the GFSC assumed it was ok from ambigious statements made by to them by the FSA . 

26th Nov 2008


"Never say Never, to use of taxpayers money."

"Never say Never". Chief Minister Lyndon Trott, in a statement to the Guernsey press, sought to clarify his comment of "Never say Never", used during a meeting with the Landsbanki depositors Action Group Committee. "I said that i couldn't see a situation occurring unless it was shown that the taxpayers in some way had been responsible for the events which led to the Administration of Landsbanki Guernsey Ltd. I said there was no evidence to suggest that there was any policy regulatory failure at all and therefore it must be made clear to the group that i thought it remained extremely unlikely any taxpayers money would be used. However, it would be foolish to say never until all the facts were completly understood by all parties."

(Evidence has now been produced to show lack of due dilligence by the GFSC and a report was submitted to Trott mid October 2009. No reply. A further chase-up letter was posted 5th Nov 2009, we await a reply.)

29th October 2008



"Gave me his personal mobile phone number"



This is part of a statement made by the Chief minister to the States in October 2008. To our knowledge no reply was ever received from Iceland and if it was it was not imparted to either Landsbanki depositors or States Members.

I was very pleased to receive the Finance Minister’s personal assurance that we would receive a formal response very soon, as would the Financial Services Commission. In a further gesture of goodwill the Finance Minister gave me his personal mobile phone number and accepted an invitation to visit Guernsey at an appropriate time.
Now we anticipate receiving the answers posed in the letters very soon, probably as early as later this week or early next week. We intend to analyze these answers extremely thoroughly with the assistance of the UK Treasury, as we have accepted their offer to assist us in negotiations.


13th October 2008


"Not up to States Standards"

Deputy Charles Parkinson, Guernsey States Treasury Minister stated just after Landsbanki Guernsey went into administration, " Landsbanki Guernsey's investment criteria weren't good enough for the States to keep any money there, taxpayer's cash is only kept with the most secure institutions, the banks they do have funds with have recently been reviewed." Deputy Parkinson did not believe it would have been up to States of Guernsey standards.

(Why on earth was it allowed to operate in the island ? )

7-10th October 2009


"Not prepared to tell."


Deputy Matt Fallaize speaking to the Guernsey press a few days after Landsbanki Guernsey was placed in Administration. " I have since written to the Director General of the GFSC, (Peter Neville) to request confirmation of when his organisation became aware of Landsbanki Guernsey's imminent collapse, I received a short reply in which he said he was not prepared to tell me. I wrote back to him advising that i could think of an appropriate reply, but i would rather not be referred to the  States members code of conduct board."

( This just about sums up the GFSC and its attitude, Landsbanki depositors are still waiting to find out exactly what the GFSC did to assist them. Peter Neville retired in 2009, still having done nothing.)

8/9 October 2008


"Main reason for difficulties, funds placed with Heritable"

Rik Garrard of Deloitte, the Landsbanki Guernsey Administrators states:

“The Bank had taken measures to diversify its exposure to its parent company in the six months preceding my appointment. The main reason for the Bank’s difficulties has been the placing of funds with its UK fellow subsidiary, Heritable Bank, which has now gone into Administration."READ FULL STATEMENT

Who insisted those funds were placed with Heritable, the GFSC, under Peter Neville as Director General.  £36 million placed with Heritable, who was reliant on landsbanki Islands hf in Iceland for funding. Not even ringfenced and knowing of the deteriorating position in Iceland.

18th September 2008


"Swift and appropriate action."

Peter Neville, previous head of Guernsey Financial Services Commission.A couple of weeks before Landsbanki Guernsey goes into Administration. "However, the commission continues to monitor very closely the effects of the current crisis both on Guernsey banks and on the other parts of the local finance sector and is prepared to take appropriate action if the need arises."

(Pity they had totally failed in their due dilligence on Heritable Bank in the UK and allowed £39 million to be upstreamed to that bank which relied on Landsbanki Islands hf in Iceland for its cash flow.)



"We've got better things to do."

John Roper, former director General of the Guernsey Financial Services commission. speaking about a Depositors Compensation scheme.We're after the high-net-worth investor for whom 15,000 Ecus is not a lot of protection for a $500,000 account. We've got better things to do."

( Things haven't changed much," ecus" became "euros" and the GFSC still has no interest  in the retail investor, but Guernsey's always happy to collect your tax.)


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